EXFO Renews Normal Course Issuer Bid
EXFO Inc. announced today that its Board of Directors has authorized the renewal of its share repurchase program, by way of a normal course issuer bid (“NCIB”) on the open market, of up to approximately 6.6% (900,000 subordinate voting shares) of the public float of 13,572,485 subordinate voting shares (as defined by the Toronto Stock Exchange (“TSX”)), as of March 21, 2016.
QUEBEC CITY, CANADA, March 29, 2016 — EXFO Inc. (NASDAQ: EXFO) (TSX: EXF) announced today that its Board of Directors has authorized the renewal of its share repurchase program, by way of a normal course issuer bid (“NCIB”) on the open market, of up to approximately 6.6% (900,000 subordinate voting shares) of the public float of 13,572,485 subordinate voting shares (as defined by the Toronto Stock Exchange (“TSX”)), as of March 21, 2016.
On March 21, 2016, EXFO had 22,305,802 subordinate voting shares outstanding. In the course of the previous renewal of its NCIB, EXFO repurchased a total of 194,389 shares, being 91,870 shares on the TSX at a weighted average amount of CA$3.87 and 102,519 shares on the NASDAQ Global Market (“NASDAQ”) at a weighted average amount of US$2.94. The previous renewal of the NCIB had been effective since March 27, 2015 and expired on March 26, 2016.
The TSX has accepted a notice filed by EXFO of its intention to renew its NCIB. EXFO may use cash, short-term investments and future cash flows from operations to fund the repurchase of shares. Repurchases under the bid will be made on the open market, through the facilities of the TSX and NASDAQ, at the prevailing market price. The timing of such repurchases, if any, will depend on price, market conditions and applicable regulatory requirements.
The NCIB will become effective on April 1, 2016 and end on March 31, 2017 or on an earlier date if EXFO repurchases the maximum number of shares permitted. The average daily trading volume (ADTV) of EXFO’s subordinate voting shares was 9,730 on the TSX and 22,074 on the NASDAQ for the most recently completed six calendar months. Accordingly, EXFO is entitled to repurchase up to 25% of the ADTV on any trading day (being 2,432 subordinate voting shares on the TSX and 5,518 subordinate voting shares on the NASDAQ) or pursuant to the applicable rules of the TSX. The program does not require the company to repurchase a minimum number of shares and it may be modified, suspended or terminated at any time without prior notice. All shares acquired by EXFO under the bid will be cancelled.
EXFO believes that the repurchase of some of its subordinate voting shares is an appropriate and desirable use of its available cash. Consequently, EXFO believes that the offer is made in the best interests of the company and its shareholders.